I guess this could be a buyer's or seller's tip....
Negotiating a buy recently, I tried out a negotiation tip I can't take credit for. Partly comes from reading about real estate investing a few years ago, as well as a podcast I listened to recently.
Deal was the site was an 'active' business (e.g., not a passive, sit-back-and-do-nothing site) providing services.
My concern was maintaing the business after transition, as obviously current owners have a lot of knowledge that could smooth out the transition.
With that in mind, I asked if they were interested in continuing on a few months in exchange for percentage of profits. They hang around, then make extra money.
What they came back with (completely unprompted by me, but where I was heading) was an offer to place approximately 60% down, and pay off the remaining 40% over a few months via the profits of the business.
(Actually it was more then 40%, as the total cost via this 'vendor financing' would be more then buying it outright -- I pay more in the end, but get their expertise during the transition.)
Not a bad deal, and certainly just one more thing to consider (for both buyers and sellers).
Anybody ever do a deal with this, and any pros and cons?